Fathom Holdings Inc (NASDAQ:FTHM) saw its stock fall 14.6% in premarket trading Friday following the announcement of an underwritten public offering. The company plans to sell 3 million shares of common stock at $2.00 per share.
Fathom expects to raise approximately $5.4 million in net proceeds after underwriting fees and expected expenses. The underwriter, Roth Capital Partners, has also been granted a 45-day option to purchase up to an additional 15% of the shares on the same terms. The offering is scheduled to close on September 22, 2025, pending customary closing conditions.
The proceeds from the offering will be used for general corporate purposes. Analysts note that public offerings often lead to stock price declines due to dilution of existing shareholders, and the $2.00 per share pricing, below recent trading levels, contributed to the sharp drop.
Roth Capital Partners serves as the sole manager of the offering.
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